Business & Finance
Business and Finance
Business and Finance
Tue, June 29, 2010
Mon, June 28, 2010 Discover Financial, Visa, Mastercard, H&R Block and Pfizer
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Discover Financial Services (NYSE: [ DFS ]), Visa, Inc. (NYSE: [ V ]), Mastercard Incorporated (NYSE: [ MA ]), H&R Block (NYSE: [ HRB ]) and Pfizer Inc. (NYSE: [ PFE ]).
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Here are highlights from Fridaya™s Analyst Blog:
Discover Surpasses Estimates
On June 24, Discover Financial Services (NYSE: [ DFS ]) reported a fiscal second quarter profit of $258 million or 33 cents per share. The earnings were well ahead of the Zacks Consensus Estimateat 11 cents. The surge in profits wasdue to a significant rise in the use of credit cards with reduced defaults, as well as gains from the payments business driven by strong volumes.
The company reported a loss of $132 million or 31 cents per share in the year-ago quarter. However, results in the year-ago quarter excluded an after-tax gain of approximately $295 million related to the settlement of an antitrust litigation with Visa, Inc. (NYSE: [ V ]) and Mastercard Incorporated (NYSE: [ MA ]).
Also, Discover made the Troubled Asset Relief Program (TARP) repayment of $1.2 billion of preferred stock. This resulted in lower earnings by 13 cents per share in the reported quarter.
H&R Block Surpasses Estimates
H&R Blocka™s (NYSE: [ HRB ]) fiscal fourth-quarter earnings from continuing operations came in at $2.11 per share, up 7 cents from the Zacks Consensus Estimate of $2.04. This also compares favorably with earnings of $2.08 per share in the year-ago period. Net income from continuing operations for the quarter was $692.4 million versus $707.8 million reported in fourth-quarter 2009.
The better-than-expected results were aided by lower operating expense and share buybacks. However, revenue suffered a decline from fewer tax filings.
Including net loss from discontinued operations of $1.6 million or 1 cent per share, H&R Blocka™s net income for the reported quarter came in at $690.8 million or $2.10 per share, compared with $706.9 million or $2.08 per share in the year-ago quarter.
Revenues for the reported quarter were $2.3 billion, down 5.2% from $2.5 billion recorded in the year-ago quarter.
Another Pipeline Setback for Pfizer
Recently, Pfizer Inc. (NYSE: [ PFE ]) halted studies being conducted with pipeline candidate tanezumab, which is being developed for the treatment of patients suffering from osteoarthritis. The global suspension comes in the wake of the FDA's request to the pharma major to stop the osteoarthritis clinical program.
The request was based on reports of the disease becoming more severe in a few patients who were treated with tanezumab. The increased severity led to joint replacement.
We note that Pfizer is also evaluating the candidate for treating cancer pain, interstitial cystitis, lower back pain and diabetic nerve pain. However, the adverse event witnessed in the osteoarthritis program is yet to be observed in the programs being conducted with non-osteoarthritis patients. The agency has directed the company to present its assessment of the potential implications of the adverse events witnessed in the osteoarthritis program in the studies being carried out with non-osteoarthritis patients.
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